DISCOVERY

Johnson & Johnson SWOT Analysis

An In-Depth SWOT Analysis of Johnson & Johnson
Johnson and Johnson swot analysis

1. Background of Johnson and Johnson

1.1. General Overview of Johnson and Johnson

Company Name

Johnson and Johnson Company

CEO

Alex Gorsky

Company Type

Public

Year Founded

January 1886

Number of Employees

126,500

Annual Revenue

US $19.733 billion (2020)

Founders

James Wood Johnson, Edward Mead Johnson, and Robert Wood Johnson

Area Served

Worldwide

Headquarters

New Brunswick, New Jersey, United States


1.2. Introduction to Johnson and Johnson

The most reputed Multinational Corporation of American is Johnson and Johnson. The company is the powerhouse of the medical service. This company has a worldwide marketing and business platform. Even this company has survived during the disastrous situation of the financial condition of the country. To protect their position stable, the company needs to know and understand their internal and external factors. It works like a miracle.

Over a century, this family business is running in a stable condition. It is a traditional company that sticks to develop medical equipment, consumer packaged goods, and various pharmaceutical things. The company is one of the most valuable companies in the world. Among two US-based companies, this company leads to AAA’s top credit rating, which is higher than the USA’s Government. Moreover, this company includes 250 subsidiary companies. This subsidiary company operates in 60 countries. Strikingly, they sell their products to around 175 countries worldwide.


1.3. Development Timeline of Johnson and Johnson

1886

Three brothers, James Wood Johnson, Edward Mead Johnson, and Robert Wood Johnson, found this company in New Jersey, USA.

1888

The publishers the "Modern Method of Antiseptic Wound Treatment." It becomes a textbook for teaching antiseptic surgery.

1894

Launches kits for maternity so that they can make childbirth safer. They start marketing Johnson baby powder.

1898

They become the first producer of dental floss.

1901

The company publishes the first manual for first aids.

1990

It launched the company’s face powder for women.

2006

Zinnia S Rivera becomes the managing director and president of the company.

2011

The firm launched the first and free mobile service for healthcare.


2. SWOT Analysis of Johnson and Johnson

Johnson and Johnson is a globally recognized company, produces medical devices and pharmaceutical products, and sustains its triumph position in the world's colossal market platform. Therefore, Johnson and Johnson SWOT analysis works as an aid for the company. This analysis helps to identify the strength and weaknesses of the company. Moreover, the firm can also determine its opportunities with the help of this SWOT analysis. Even the company can override the threats as well if they have prior knowledge of the same.

2.1. SWOT Analysis of Johnson and Johnson in Detail

Strength:

Analyzing the strength of any company is a very significant part of their SWOT analysis. The company must be well aware of its strengths as those features have helped them earn its name in the market. The company must keep in mind that they must not neglect their strengths when working on their weaknesses and new opportunities. Like most other brands, The Johnson and Johnson also has some strengths:

  • The company has its dominance globally as it operates through its 265 subsidiaries in over 60 countries. It also has a leading position among other health-care companies throughout the world;
  • All over the world, this company stands to be the one which is the most influential company as well. They influence the economies of the countries' wellbeing and include the USA's stock market;
  • With over a century of experience, the company is excellent in fulfilling the market targets' needs. Thus, this works as a significant strength for the company;
  • The company has a substantial supply chain, which secures the availability of the raw materials and distribution of the finished materials efficiently.
Weakness:

For any company, it is pretty common to have some weaknesses. The companies need to find strategies that can remove those weaknesses. When a company is in a competitive market, any weakness can impact its growth against its competitors. The company can plan some long-term plans to change those weaknesses into their strengths. Johnson and Johnson also has some weaknesses. For example:

  • The lawsuits on various projects like Johnson and Johnson's talc-based baby powder and Xarelto, and other things influenced the customer's trust a lot. It leads to a negative impact;
  • The company's global revenue encircles mainly between three divisions, medical devices, diagnostics, and pharmaceutical. Thus, this proves they do not have any diversity, which has incurred a catastrophic loss;
  • The company is over depended on Zyitga till 2018, which use to incur $ 3.5 billion per year. Their sales declined when the court provided an allowance to the sales of the generic version.
Opportunities:

A company must consider the opportunities that they can get to survive the high market competition. They must set their policies as per those opportunities to ensure their growth in the future. They should also consider the condition of the market while working on their opportunities. Here are some opportunities for Johnson and Johnson:

  • There has been an increment in the total revenue to 80%. The increase in the sale of health-care products for the consumers leads. It has rebalanced its portfolio;
  • 57% of the sales come from the USA. Therefore the company needs to focus on pharmaceutical sales in Asia, Africa, and Latin America;
  • They can offer a discounted price on drugs to attract the lower-class.
Threats:

All the companies that survive in a competitive market must have some threats that can stop their growth. Other competent opponents' market conditions change of taste of the customers can be prevalent threats. Similarly, a famous brand like Johnson and Johnson also has some threats:

  • The company faces tough competition from Abbott, Procter and Gamble, and many more. If this goes on, then they might lose their market share as well. It is a fear for them;
  • Increment in sales of Generic drugs leads to a significant threat for the company;
  • The rapid emergence of innovative drugs in many countries like India works as a threat for the company. They need to make themselves advance with new technology.

Johnson and Johnson SWOT analysis

Source:EdrawMax Online


3. Key Takeaways

The Johnson and Johnson SWOT analysis can show that the company can handle its weakness and cushion its threats with some easy strategies. They need to plan some policies that can help them work on their opportunities to expand. Some recommendations for the company are:

  1. The discounted offer in the price for the drugs may attract a considerable number of customers. If the price is within an affordable range, it will upgrade its sales for the consumers;
  2. The company needs to make more innovative drugs to substitute the other countries' new and many effective drugs;
  3. The company needs to settle its legal disputes. It would increase the company's finances.

Use EdrawMax Online to create a SWOT analysis diagram, or create any other diagram with ease! There are massive SWOT templates and symbols to choose from, and creating a SWOT analysis diagram could be really simple. Also, you can find substantial SWOT templates in our template community to have a quick start.

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